TY  - CHAP
AB  - Purpose – Study the firm-level and country-level determinants of US institutional investors' holdings in American Depositary Receipts (ADRs) from emerging markets.Methodology/approach – We use a sample of 112 firms from emerging markets that listed as ADRs between 1990 and 2005. Rather than adopting the issuer's perspective, we take in this study the point of view of the investor and we focus on the US institutional investors' participation in ADR firms.Findings – We find that institutional investors hold higher stakes in foreign firms that are listed on more restrictive exchanges, in large, privatized, more liquid, and more transparent firms. Mutual investors and other institutional investors also prefer firms from countries with weaker institutional environments and from civil law legal tradition. Controlling for country-level determinants increases significantly the explanatory power of the model.Social implications – Our results have important implications for firms from emerging markets seeking to attract foreign institutional investors.Originality/value of the chapter – We focus on the motivations of investors when they choose to invest in the ADR, rather than on the ADR issuer motivation. In addition, we consider all types of institutional investors that acquire a participation in an ADR firm.
VL  - 12
SN  - 978-1-78052-243-2, 978-1-78052-242-5/1569-3767
DO  - 10.1108/S1569-3767(2011)0000012008
UR  - https://doi.org/10.1108/S1569-3767(2011)0000012008
AU  - Boubakri Narjess
AU  - Hamza Olfa
AU  - Kooli Maher
ED  - Narjess Boubakri
ED  - Jean-Claude Cosset
PY  - 2011
Y1  - 2011/01/01
TI  - Institutional Investors' Participation in Foreign Firms: Evidence from ADRs
T2  - Institutional Investors in Global Capital Markets
T3  - International Finance Review
PB  - Emerald Group Publishing Limited
SP  - 145
EP  - 168
Y2  - 2024/04/19
ER  -